Monitor Muffler sells franchise arrangements throughout the
United States and Canada. Under a franchise agreement, Monitor
receives $750,000 in exchange for satisfying the following separate
performance obligations: (1) franchisees have a five-year right to
operate as a Monitor Muffler retail establishment in an exclusive
sales territory, (2) franchisees receive initial training and
certification as a Monitor Mechanic, and (3) franchisees receive a
Monitor Muffler building and necessary equipment. The stand-alone
selling price of the initial training and certification is $18,000,...